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LOGICAL DEDUCTIONS, LLC

LOGICAL DEDUCTIONS, LLC. 167 Cherry St. Suite 159 Milford, CT 06460 Keith Weindling 203-268-9295. Flexible Spending : Health Care Dependent Care Transit Benefits. Medical Co-Pays Prescription Co-Pays Dental Co-Pays Eye Glasses Contact Lenses Chiropractor . Dependent Care

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LOGICAL DEDUCTIONS, LLC

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  1. LOGICAL DEDUCTIONS, LLC 167 Cherry St. Suite 159 Milford, CT 06460 Keith Weindling 203-268-9295

  2. Flexible Spending :Health CareDependent CareTransit Benefits

  3. Medical Co-Pays Prescription Co-Pays Dental Co-Pays Eye Glasses Contact Lenses Chiropractor Dependent Care Day Care Expense Transit Expense (Train) Parking Expense Hearing Aid Counseling FLEXIBLE BENEFIT EXAMPLES

  4. What is a Flexible Spending Account? • A Flexible Spending Account is an easy way for • participants to pay for health care, dependent care, • and transit expenses that are not covered by another • benefits plan through payroll deductions on a pre-tax • basis. The program is governed by the IRS.

  5. Why Offer Flexible Spending Accounts? • Saves participants and clients money • FSA deposits are made on a pre-tax basis • EMPLOYERS save on matching FICA contributions and offer an excellent fringe benefit to all employees. • PARTICIPANTS save on Federal, State, and local income taxes, as well as FICA Taxes. • Encourages participants to make appropriate health care spending decisions

  6. FSA Tax Savings Example With FSAs Without FSAs Gross Salary $35,000 $35,000 Health, Dependent, and Transit Expenses Paid Through the FSAs $ 5,000 -0- Taxable Salary $30,000 $35,000 Taxes (30%) $ 9,000 $10,500 Health, Dependent, and Transit Expenses Not Paid Though the FSAs -0- $ 5,000 Take-home Pay $21,000$19,500 Employee Savings $1,500

  7. FSA Tax Savings Example With FSAs Without FSAs Gross Salary $35,000 $35,000 Health, Dependent Care, and Transit Expenses Paid Through the FSAs $ 5,000 -0- Taxable Salary $30,000 $35,000 Taxes (30%) $ 9,000 $10,500 Health and Dependent Care Expenses Not Paid Though the FSAs -0- $ 5,000 Take-home Pay $21,000$19,500 Employer Savings $382.50 per employee

  8. Health Care Reimbursable Expenses • Medical, dental and other expenses not covered by participant’s health plan • Deductibles and co-payments, if applicable for participant’s plan or participant’s spouse’s plan • Vision expenses (contact lenses, lasik surgery, eyeglasses, eye exams, etc.) • Hearing expenses (hearing exams, aids) Psychotherapy, counseling

  9. Dependent Care Reimbursable Expenses • Licensed nursery schools, day camps, day care centers • Services from individuals who provide care inside or outside participant’s home (care provider may not be participant’s dependent or a child age 13 or younger).

  10. Transit and Parking Expenses • Qualified transportation expenses generally include payments for the use of mass transportation (train, subway, bus fares are typical examples). • Parking expenses include the costs of parking a vehicle in a facility that is near the employee’s place of work or parking at a location from where the employee commutes to work. (for example, the cost of parking in a lot at the train station so that the employee can continue their commute on the train)

  11. FSA Contribution Amounts Health Care FSA • Plan Maximum is set by employer Dependent Care FSA • Plan Maximum is $5000 • Transit Expense Guidelines • Parking: Transit:

  12. IRS Limitations • Use it or lose it (national forfeiture rate is only 5%) • Uniform coverage • Limited opportunity to revoke or make new elections

  13. Family Status Changes • marriage or divorce • birth or adoption of a child • death of a dependent or spouse • loss of a dependent child’s eligibility • commencement or termination of your spouse’s employment • change in employment status (from full-time to part-time or vice versa) • unpaid leave of absence taken by you or your spouse

  14. FSA Plan Fees • One Time Plan Setup: $ 350.00 • Annual Renewal : $ N/C • Monthly : $ 35.00 Base $ 3.50 per participant • All checks sent directly to each employee. Reimbursements may be submitted monthly.

  15. Employer Savings Example:# of Employees: ____10____ Health Care Contribution : ___$6,000___Dependent Care Contribution : ___$10,000__Total Employee Contributions: ___$16,000__Annual Employer Savings (FICA 7.65% x total contributions): ___$1,224___Estimated Annual Fees: ____$840____TOTAL EMPLOYER SAVINGS: ___$384___Flexible Savings Plans are an excellent benefit to all employees !!In this example, each employee is also saving over $450 ($1600 in pre-tax contributions times FICA + FIT +SIT )

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